Predictions state that Nokia may sell mobile division in 2013

It is the start of a new year, and everyone is busy making predictions like always. But one of the most shocking predictions comes from Forbes, which has projected that Nokia may end up selling its mobile division.


The prediction admits that it is bound to be the most controversial one, but nonetheless states that 2013 will be the year that Nokia sells off its phone business and infrastructure divisions to Huawei so that it can focus more on its software and services. This would be a lead up to Nokia's bets on Microsoft's Windows Phone 8 failing, and end up with it selling its smartphone group to Microsoft and the rest of its telecom interests to Huawei.

Desperate times...

Nokia may have to sell its mobile division according to predictions


Nokia had announced its flagship phone—the Lumia 920 and 820—back in September. The devices were launched in some countries with expectations of a "make or break" for Nokia, once the undisputed leader in mobile phones, now losing share in smartphones and lower-end handsets. The handsets initially sold out across stores in Europe and America, and generally garnered positive reviews.

But analysts say there's no proof that Lumia phones are making significant inroads on market leaders Samsung and Apple or that Chief Executive Stephen Elop's risky strategy of betting the company's future on Windows software was paying off.

"I think people are looking and saying, 'Hey, there aren't enough 920s in the market', but the reality is that the volume is so small. It's not going to move the needle," said Pacific Crest Securities analyst James Faucette.

That would be better than the three million Lumia smartphones sold in the third quarter, but it pales in comparison with Samsung, which champions Google's Android system.


Other predictions by Forbes include 4G telecom networks becoming the new standard. This includes all of the services that are branded as 4G, LTE, WiMax, or HSPA+. It offers much faster data speed than even its closest cousin—3G. As a result of this, carriers may start marketing themselves through the size of their 4G networks. In response to this, 3G will end up becoming the low-cost option that is currently being fulfilled by 2G.

Another prediction is that Amazon, Microsoft, and Google will all introduce their own mobile phones. While the Microsoft Surface smartphone has been the subject of much speculation and many rumours, it will still be interesting to look at the software giant trying to teach other OEMs how its done. Google's phone will be different from its current Nexus crop, as it will be created directly by the search giant, possibly through Motorola. Not to be outdone, Amazon may expand its Kindle Fire line-up with a low-cost smartphone under the same brand.

Published Date: Jan 03, 2013 07:28 pm | Updated Date: Jan 03, 2013 07:28 pm